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Avio S.p.A. (IT:AVIO)
:AVIO
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Avio S.p.A. (AVIO) AI Stock Analysis

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IT:AVIO

Avio S.p.A.

(LSE:AVIO)

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Neutral 60 (OpenAI - 4o)
Rating:60Neutral
Price Target:
€50.00
▼(-6.54% Downside)
Avio S.p.A. shows a stable financial position with strong cash flow generation and low leverage, which are positive factors. However, high valuation metrics and overbought technical indicators present risks. The lack of earnings call data and corporate events limits additional insights.
Positive Factors
Negative Factors

Avio S.p.A. (AVIO) vs. iShares MSCI Italy ETF (EWI)

Avio S.p.A. Business Overview & Revenue Model

Company DescriptionAvio S.p.A., through its subsidiaries, engages in the design, development, and production of propellant propulsion systems for space launchers in Italy and internationally. It is involved in the design, development, and production of solid propellant propulsion systems for tactical missiles; development, integration, and supply of light space launchers; and research and development of low environmental impact propulsion systems, and satellite tracking control motors. The company also offers propulsion boosters, liquid oxygen turbo pumps, and aerodynamic control surfaces. It offers space launchers under the VEGA and ARIANE names. The company was founded in 1984 and is based in Rome, Italy.
How the Company Makes MoneyAvio generates revenue through multiple streams, primarily from contracts with governmental space agencies, commercial satellite operators, and international partnerships. Key revenue sources include the production of propulsion systems for the Ariane and Vega launch vehicles, as well as ongoing contracts for satellite launch services. The company benefits from significant collaborations, particularly with the European Space Agency (ESA) and the Italian Space Agency (ASI), which provide funding and support for various projects. Additionally, Avio's focus on innovation and technology development allows it to participate in emerging markets such as small satellite launches and reusable launch systems, further diversifying its revenue potential.

Avio S.p.A. Financial Statement Overview

Summary
Avio S.p.A. presents a mixed financial performance. Positive revenue growth and strong free cash flow generation indicate potential for future growth. However, declining profit margins and operational inefficiencies pose challenges. The balance sheet is strong with low leverage, providing financial stability.
Income Statement
65
Positive
Avio S.p.A. shows a mixed performance in its income statement. The company has achieved a modest revenue growth rate of 3.88% TTM, indicating a positive trend in sales. However, the gross profit margin has decreased over time, from 33.14% in 2023 to 21.99% TTM, suggesting increased cost pressures. The net profit margin is low at 0.89% TTM, reflecting challenges in translating revenue into profit. The EBIT margin is negative, indicating operational inefficiencies, though the EBITDA margin remains positive at 5.08% TTM, showing some resilience in cash earnings.
Balance Sheet
75
Positive
Avio S.p.A.'s balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.036 TTM, indicating conservative leverage. The return on equity is modest at 1.94% TTM, suggesting limited profitability from equity investments. The equity ratio is strong, highlighting a solid capital structure with a significant portion of assets financed by equity. Overall, the balance sheet suggests financial stability with low risk from debt.
Cash Flow
70
Positive
The cash flow statement of Avio S.p.A. shows a robust free cash flow growth rate of 99.76% TTM, indicating significant improvement in cash generation. The operating cash flow to net income ratio is low at 0.045 TTM, suggesting that operating cash flows are not fully covering net income. However, the free cash flow to net income ratio is high at 0.97 TTM, demonstrating effective cash conversion from profits. Overall, the cash flow position is improving, but there are areas for enhancement in operating cash flow efficiency.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue665.82M483.99M343.70M73.22M324.14M206.11M
Gross Profit146.47M130.03M113.89M72.40M96.64M105.57M
EBITDA33.84M25.83M22.41M21.45M30.15M35.34M
Net Income5.94M6.09M6.49M-435.00K8.48M14.12M
Balance Sheet
Total Assets1.08B1.09B1.06B1.29B1.24B1.12B
Cash, Cash Equivalents and Short-Term Investments86.50M101.68M95.59M131.40M104.61M124.67M
Total Debt11.24M11.59M19.46M56.95M47.45M62.03M
Total Liabilities762.05M779.52M744.75M982.10M926.12M810.48M
Stockholders Equity310.59M302.83M300.62M293.66M302.48M303.48M
Cash Flow
Free Cash Flow30.97M25.10M6.14M33.22M7.54M12.80M
Operating Cash Flow31.98M60.26M42.48M65.74M41.26M47.40M
Investing Cash Flow-35.37M-35.16M-38.85M-34.23M-33.71M-34.60M
Financing Cash Flow3.32M-19.01M-39.44M-4.72M-27.59M-32.44M

Avio S.p.A. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price53.50
Price Trends
50DMA
35.64
Positive
100DMA
28.62
Positive
200DMA
22.56
Positive
Market Momentum
MACD
4.17
Negative
RSI
80.45
Negative
STOCH
85.96
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:AVIO, the sentiment is Positive. The current price of 53.5 is above the 20-day moving average (MA) of 41.44, above the 50-day MA of 35.64, and above the 200-day MA of 22.56, indicating a bullish trend. The MACD of 4.17 indicates Negative momentum. The RSI at 80.45 is Negative, neither overbought nor oversold. The STOCH value of 85.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:AVIO.

Avio S.p.A. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
€31.12B29.7211.95%0.96%14.13%5.99%
66
Neutral
€7.26B55.783.87%18.44%
60
Neutral
€1.37B221.941.96%0.28%32.64%-38.77%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:AVIO
Avio S.p.A.
53.50
40.89
324.27%
IT:FCT
Fincantieri S.p.A.
22.34
17.63
374.31%
IT:LDO
Leonardo Spa
54.02
33.15
158.89%
IT:ALA
A.L.A. S.p.A.
35.20
11.90
51.05%
IT:NUS
Nusco SpA
0.90
-0.01
-1.10%
IT:YRM
Rosetti Marino S.p.A.
234.00
191.38
449.04%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 23, 2025